Kim Kardashian and Floyd Mayweather Jr accused of crypto misleading

A lawsuit has been filed against reality TV star Kim Kardashian and former boxing champion Floyd Mayweahter Jr. They are accused of misleading promotion of a token dubbed as EthereumMax last June.

Are you into crypto? my friends told me about it.

 Kim Kardashian asked last June in an Instagram post

At the same time, former boxing champion Floyd Mayweather was promoting this token, wearing an item of clothing in his image during a fight with YouTuber Logan Paul broadcast on YouTube. But those who took the advice of these stars and bought EthereumMax were at their expense: after having climbed 1260% (reaching a value of 0.00007 euros), it fell back in about two weeks later to its initial level.

Of course, cryptocurrencies are volatile, and investing in them always involves a great risk. Some people who have invested in EthereumMax, however, believe they have been misled by the two celebrities. A complaint was thus filed on January 7 against them by a New York resident. The text accuses Kim Kardashian and Floyd Mayweather Jr of misleading EthereumMax promotion. The process could turn into a class action if other people who bought EMAX tokens between mid-May and the end of June 2021 decide to join it.

False promises

“Company executives, along with several famous influencers, have made false or misleading claims about EthereumMax in sponsored content posted on social media and in other promotional activities,” said the complaint filer. The document criticizes the two respondents in particular for having “created a situation where people bought declining investments at inflated prices.”

The Financial Conduct Authority, the British finance regulator, was already moved last September by the publications of Kim Kardashian. The FCA was alarmed that consumers could be lured into a “crypto bubble” by spurious promises of quick wins. When Kim Kardashian was paid to ask her 250 million Instagram followers to speculate in crypto tokens by joining the Ethereum Max community, it was possibly the biggest financial ad in history, Specified the FCA.

This is not the first time sponsored content from influencers on social media has raised questions and complaints. These paid advertisements are often disguised promotions without telling the readers if they were paid promotions or not. Users often fall for getting this quick rich schemes.

Source:

Numerama

Bloomberg

Original link: Your go to Crypto place